When we compare the condition of the country at the present day with
what it was one year ago at the meeting of Congress, we have much reason
for gratitude to that Almighty Providence which has never failed to interpose
for our relief at the most critical periods of our history. One year ago
the sectional strife between the North and the South on the dangerous subject
of slavery had again become so intense as to threaten the peace and perpetuity
of the Confederacy. The application for the admission of Kansas as a State
into the Union fostered this unhappy agitation and brought the whole subject
once more before Congress. It was the desire of every patriot that such
measures of legislation might be adopted as would remove the excitement
from the States and confine it to the Territory where it legitimately belonged.
Much has been done, I am happy to say, toward the accomplishment of this
object during the last session of Congress. The Supreme Court of the United
States had previously decided that all American citizens have an equal
right to take into the Territories whatever is held as property under the
laws of any of the States, and to hold such property there under the guardianship
of the Federal Constitution so long as the Territorial condition shall
remain.

This is now a well-established position, and the proceedings of the
last session were alone wanting to give it practical effect. The principle
has been recognized in some form or other by an almost unanimous vote of
both Houses of Congress that a Territory has a right to come into the Union
either as a free or a slave State, according to the will of a majority
of its people. The just equality of all the States has thus been vindicated
and a fruitful source of dangerous dissension among them has been removed.

Whilst such has been the beneficial tendency of your legislative proceedings
outside of Kansas, their influence has nowhere been so happy as within
that Territory itself. Left to manage and control its own affairs in its
own way, without the pressure of external influence, the revolutionary
Topeka organization and all resistance to the Territorial government established
by Congress have been finally abandoned. As a natural consequence that
fine Territory now appears to be tranquil and prosperous and is attracting
increasing thousands of immigrants to make it their happy home.

The past unfortunate experience of Kansas has enforced the lesson, so
often already taught, that resistance to lawful authority under our form
of government can not fail in the end to prove disastrous to its authors.
Had the people of the Territory yielded obedience to the laws enacted by
their legislature, it would at the present moment have contained a large
additional population of industrious and enterprising citizens, who have
been deterred from entering its borders by the existence of civil strife
and organized rebellion.

It was the resistance to rightful authority and the persevering attempts
to establish a revolutionary government under the Topeka constitution which
caused the people of Kansas to commit the grave error of refusing to vote
for delegates to the convention to frame a constitution under a law not
denied to be fair and just in its provisions. This refusal to vote has
been the prolific source of all the evils which have followed, In their
hostility to the Territorial government they disregarded the principle,
absolutely essential to the working of our form of government, that a majority
of those who vote, not the majority who may remain at home, from whatever
cause, must decide the result of an election. For this reason, seeking
to take advantage of their own error, they denied the authority of the
convention thus elected to frame a constitution.

The convention, notwithstanding, proceeded to adopt a constitution unexceptionable
in its general features, and providing for the submission of the slavery
question to a vote of the people, which, in my opinion, they were bound
to do under the Kansas and Nebraska act. This was the all-important question
which had alone convulsed the Territory; and yet the opponents of the lawful
government, persisting in their first error, refrained from exercising
their right to vote, and preferred that slavery should continue rather
than surrender their revolutionary Topeka organization.

A wiser and better spirit seemed to prevail before the first Monday
of January last, when an election was held under the constitution. A majority
of the people then voted for a governor and other State officers, for a
Member of Congress and members of the State legislature. This election
was warmly contested by the two political parties in Kansas, and a greater
vote was polled than at any previous election. A large majority of the
members of the legislature elect belonged to that party which had previously
refused to vote. The antislavery party were thus placed in the ascendant,
and the political power of the State was in their own hands. Had Congress
admitted Kansas into the Union under the Lecompton constitution, the legislature
might at its very first session have submitted the question to a vote of
the people whether they would or would not have a convention to amend their
constitution, either on the slavery or any other question, and have adopted
all necessary means for giving speedy effect to the will of the majority.
Thus the Kansas question would have been immediately and finally settled.

Under these circumstances I submitted to Congress the constitution thus
framed, with all the officers already elected necessary to put the State
government into operation, accompanied by a strong recommendation in favor
of the admission of Kansas as a State. In the course of my long public
life I have never performed any official act which in the retrospect has
afforded me more heartfelt satisfaction. Its admission could have inflicted
no possible injury on any human being, whilst it would within a brief period
have restored peace to Kansas and harmony to the Union. In that event the
slavery question would ere this have been finally settled according to
the legally expressed will of a majority of the voters, and popular sovereignty
would thus have been vindicated in a constitutional manner.

With my deep convictions of duty I could have pursued no other course.
It is true that as an individual I had expressed an opinion, both before
and during the session of the convention, in favor of submitting the remaining
clauses of the constitution, as well as that concerning slavery, to the
people. But, acting in an official character, neither myself nor any human
authority had the power to rejudge the proceedings of the convention and
declare the constitution which it had framed to be a nullity. To have done
this would have been a violation of the Kansas and Nebraska act, which
left the people of the Territory "perfectly free to form and regulate their
domestic institutions in their own way, subject only to the Constitution
of the United States." It would equally have violated the great principle
of popular sovereignty, at the foundation of our institutions, to deprive
the people of the power, if they thought proper to exercise it, of confiding
to delegates elected by themselves the trust of framing a constitution
without requiring them to subject their constituents to the trouble, expense,
and delay of a second election. It would have been in opposition to many
precedents in our history, commencing in the very best age of the Republic,
of the admission of Territories as States into the Union without a previous
vote of the people approving their constitution.

It is to be lamented that a question so insignificant when viewed in
its practical effects on the people of Kansas, whether decided one way
or the other, should have kindled such a flame of excitement throughout
the country. This reflection may prove to be a lesson of wisdom and of
warning for our future guidance. Practically considered, the question is
simply whether the people of that Territory should first come into the
Union and then change any provision in their constitution not agreeable
to themselves, or accomplish the very same object by remaining out of the
Union and framing another constitution in accordance with their will. In
either case the result would be precisely the same. The only difference,
in point of fact, is that the object would have been much sooner attained
and the pacification of Kansas more speedily effected had it been admitted
as a State during the last session of Congress.

My recommendation, however, for the immediate admission of Kansas failed
to meet the approbation of Congress. They deemed it wiser to adopt a different
measure for the settlement of the question. For my own part, I should have
been willing to yield my assent to almost any constitutional measure to
accomplish this object. I therefore cordially acquiesced in what has been
called the English compromise and approved the "act for the admission of
the State of Kansas into the Union" upon the terms therein prescribed.

Under the ordinance which accompanied the Lecompton constitution the
people of Kansas had claimed double the quantity of public lands for the
support of common schools which had ever been previously granted to any
State upon entering the Union, and also the alternate sections of land
for 12 miles on each side of two railroads proposed to be constructed from
the northern to the southern boundary and from the eastern to the western
boundary of the State. Congress, deeming these claims unreasonable, provided
by the act of May 4, 1858, to which I have just referred, for the admission
of the State on an equal footing with the original States, but "upon the
fundamental condition precedent" that a majority of the people thereof,
at an election to be held for that purpose, should, in place of the very
large grants of public lands which they had demanded under the ordinance,
accept such grants as had been made to Minnesota and other new States.
Under this act, should a majority reject the proposition offered them,
"it shall be deemed and held that the people of Kansas do not desire admission
into the Union with said constitution under the conditions set forth in
said proposition." In that event the act authorizes the people of the Territory
to elect delegates to form a constitution and State government for themselves
"whenever, and not before, it is ascertained by a census, duly and legally
taken, that the population of said Territory equals or exceeds the ratio
of representation required for a member of the House of Representatives
of the Congress of the United States." The delegates thus assembled "shall
first determine by a vote whether it is the wish of the people of the proposed
State to be admitted into the Union at that time, and, if so, shall proceed
to form a constitution and take all necessary steps for the establishment
of a State government in conformity with the Federal Constitution." After
this constitution shall have been formed, Congress, carrying out the principles
of popular sovereignty and nonintervention, have left "the mode and manner
of its approval or ratification by the people of the proposed State" to
be "prescribed by law," and they "shall then be admitted into the Union
as a State under such constitution, thus fairly and legally made, with
or without slavery, as said constitution may prescribe."

An election was held throughout Kansas, in pursuance of the provisions
of this act, on the 2d day of August last, and it resulted in the rejection
by a large majority of the proposition submitted to the people by Congress.
This being the case, they are now authorized to form another constitution,
preparatory to admission into the Union, but not until their number, as
ascertained by a census, shall equal or exceed the ratio required to elect
a member to the House of Representatives.

It is not probable, in the present state of the case, that a third constitution
can be lawfully framed and presented to Congress by Kansas before its population
shall have reached the designated number. Nor is it to be presumed that
after their sad experience in resisting the Territorial laws they will
attempt to adopt a constitution in express violation of the provisions
of an act of Congress. During the session of 1856 much of the time of Congress
was occupied on the question of admitting Kansas under the Topeka constitution.
Again, nearly the whole of the last session was devoted to the question
of its admission under the Lecompton constitution. Surely it is not unreasonable
to require the people of Kansas to wait before making a third attempt until
the number of their inhabitants shall amount to 93,420. During this brief
period the harmony of the States as well as the great business interests
of the country demand that the people of the Union shall not for a third
time be convulsed by another agitation on the Kansas question. By waiting
for a short time and acting in obedience to law Kansas will glide into
the Union without the slightest impediment.

This excellent provision, which Congress have applied to Kansas, ought
to be extended and rendered applicable to all Territories which may hereafter
seek admission into the Union.

Whilst Congress possess the undoubted power of admitting a new State
into the Union, however small may be the number of its inhabitants, yet
this power ought not, in my opinion, to be exercised before the population
shall amount to the ratio required by the act for the admission of Kansas.
Had this been previously the rule, the country would have escaped all the
evils and misfortunes to which it has been exposed by the Kansas question.

Of course it would be unjust to give this rule a retrospective application,
and exclude a State which, acting upon the past practice of the Government,
has already formed its constitution, elected its legislature and other
officers, and is now prepared to enter the Union. The rule ought to be
adopted, whether we consider its bearing on the people of the Territories
or upon the people of the existing States. Many of the serious dissentions
which have prevailed in Congress and throughout the country would have
been avoided had this rule been established at an earlier period of the
Government.

Immediately upon the formation of a new Territory people from different
States and from foreign countries rush into it for the laudable purpose
of improving their condition. Their first duty to themselves is to open
and cultivate farms, to construct roads, to establish schools, to erect
places of religious worship, and to devote their energies generally to
reclaim the wilderness and to lay the foundations of a flourishing and
prosperous commonwealth. If in this incipient condition, with a population
of a few thousand, they should prematurely enter the Union, they are oppressed
by the burden of State taxation, and the means necessary for the improvement
of the Territory and the advancement of their own interests are thus diverted
to very different purposes.

The Federal Government has ever been a liberal parent to the Territories
and a generous contributor to the useful enterprises of the early settlers.
It has paid the expenses of their governments and legislative assemblies
out of the common Treasury, and thus relieved them from a heavy charge.
Under these circumstances nothing can be better calculated to retard their
material progress than to divert them from their useful employments by
prematurely exciting angry political contests among themselves for the
benefit of aspiring leaders. It is surely no hardship for embryo governors,
Senators, and Members of Congress to wait until the number of inhabitants
shall equal those of a single Congressional district. They surely ought
not to be permitted to rush into the Union with a population less than
one-half of several of the large counties in the interior of some of the
States. This was the condition of Kansas when it made application to be
admitted under the Topeka constitution. Besides, it requires some time
to render the mass of a population collected in a new Territory at all
homogeneous and to unite them on anything like a fixed policy. Establish
the rule, and all will look forward to it and govern themselves accordingly.
But justice to the people of the several States requires that this rule
should be established by Congress. Each State is entitled to two Senators
and at least one Representative in Congress. Should the people of the States
fail to elect a Vice-President, the power devolves upon the Senate to select
this officer from the two highest candidates on the list. In case of the
death of the President, the Vice-President thus elected by the Senate becomes
President of the United States. On all questions of legislation the Senators
from the smallest States of the Union have an equal vote with those from
the largest. The same may be said in regard to the ratification of treaties
and of Executive appointments. All this has worked admirably in practice,
whilst it conforms in principle with the character of a Government instituted
by sovereign States. I presume no American citizen would desire the slightest
change in the arrangement. Still, is it not unjust and unequal to the existing
States to invest some 40,000 or 50,000 people collected in a Territory
with the attributes of sovereignty and place them on an equal footing with
Virginia and New York in the Senate of the United States?

For these reasons I earnestly recommend the passage of a general act
which shall provide that, upon the application of a Territorial legislature
declaring their belief that the Territory contains a number of inhabitants
which, if in a State, would entitle them to elect a Member of Congress,
it shall be the duty of the President to cause a census of the inhabitants
to be taken, and if found sufficient then by the terms of this act to authorize
them to proceed "in their own way" to frame a State constitution preparatory
to admission into the Union. I also recommend that an appropriation may
be made to enable the President to take a census of the people of Kansas.

The present condition of the Territory of Utah, when contrasted with
what it was one year ago, is a subject for congratulation. It was then
in a state of open rebellion, and, cost what it might, the character of
the Government required that this rebellion should be suppressed and the
Mormons compelled to yield obedience to the Constitution and the laws.
In order to accomplish this object, as I informed you in my last annual
message, I appointed a new governor instead of Brigham Young, and other
Federal officers to take the place of those who, consulting their personal
safety, had found it necessary to withdraw from the Territory.

To protect these civil officers, and to aid them, as a posse comitatus,
in the execution of the laws in case of need, I ordered a detachment of
the Army to accompany them to Utah. The necessity for adopting these measures
is now demonstrated.

On the 15th of September, 1857, Governor Young issued his proclamation,
in the style of an independent sovereign, announcing his purpose to resist
by force of arms the entry of the United States troops into our own Territory
of Utah. By this he required all the forces in the Territory to "hold themselves
in readiness to march at a moment's notice to repel any and all such invasion,"
and established martial law from its date throughout the Territory. These
proved to be no idle threats. Forts Bridger and Supply were vacated and
burnt down by the Mormons to deprive our troops of a shelter after their
long and fatiguing march. Orders were issued by Daniel H. Wells, styling
himself "Lieutenant General, Nauvoo Legion," to stampede the animals of
the United States troops on their march, to set fire to their trains, to
burn the grass and the whole country before them and on their flanks, to
keep them from sleeping by night surprises, and to blockade the road by
felling trees and destroying the fords of rivers, etc.

These orders were promptly and effectually obeyed. On the 4th of October,
1857, the Mormons captured and burned, on Green River, three of our supply
trains, consisting of seventy-five wagons loaded with provisions and tents
for the army, and carried away several hundred animals. This diminished
the supply of provisions so materially that General Johnston was obliged
to reduce the ration, and even with this precaution there was only sufficient
left to subsist the troops until the 1st of June.

Our little army behaved admirably in their encampment at Fort Bridger
under these trying privations. In the midst of the mountains, in a dreary,
unsettled, and inhospitable region, more than a thousand miles from home,
they passed the severe and inclement winter without a murmur. They looked
forward with confidence for relief from their country in due season, and
in this they were not disappointed. The Secretary of War employed all his
energies to forward them the necessary supplies and to muster and send
such a military force to Utah as would render resistance on the part of
the Mormons hopeless, and thus terminate the war without the effusion of
blood. In his efforts he was efficiently sustained by Congress. They granted
appropriations sufficient to cover the deficiency thus necessarily created,
and also provided for raising two regiments of volunteers "for the purpose
of quelling disturbances in the Territory of Utah, for the protection of
supply and emigrant trains, and the suppression of Indian hostilities on
the frontiers." Happily, there was no occasion to call these regiments
into service. If there had been, I should have felt serious embarrassment
in selecting them, so great was the number of our brave and patriotic citizens
anxious to serve their country in this distant and apparently dangerous
expedition. Thus it has ever been, and thus may it ever be.

The wisdom and economy of sending sufficient reenforcements to Utah
are established, not only by the event, but in the opinion of those who
from their position and opportunities are the most capable of forming a
correct judgment. General Johnston, the commander of the forces, in addressing
the Secretary of War from Fort Bridger under date of October 18, 1857,
expresses the opinion that "unless a large force is sent here, from the
nature of the country a protracted war on their [the Mormons's] part is
inevitable." This he considered necessary to terminate the war "speedily
and more economically than if attempted by insufficient means."

In the meantime it was my anxious desire that the Mormons should yield
obedience to the Constitution and the laws without rendering it necessary
to resort to military force. To aid in accomplishing this object, I deemed
it advisable in April last to dispatch two distinguished citizens of the
United States, Messrs. Powell and McCulloch, to Utah. They bore with them
a proclamation addressed by myself to the inhabitants of Utah, dated on
the 6th day of that month, warning them of their true condition and how
hopeless it was on their part to persist in rebellion against the United
States, and offering all those who should submit to the laws a full pardon
for their past seditions and treasons. At the same time I assured those
who should persist in rebellion against the United States that they must
expect no further lenity, but look to be rigorously dealt with according
to their deserts. The instructions to these agents, as well as a copy of
the proclamation and their reports, are herewith submitted. It will be
seen by their report of the 3d of July last that they have fully confirmed
the opinion expressed by General Johnston in the previous October as to
the necessity of sending reenforcements to Utah. In this they state that
they "are firmly impressed with the belief that the presence of the Army
here and the large additional force that had been ordered to this Territory
were the chief inducements that caused the Mormons to abandon the idea
of resisting the authority of the United States. A less decisive policy
would probably have resulted in a long, bloody, and expensive war."

These gentlemen conducted themselves to my entire satisfaction and rendered
useful services in executing the humane intentions of the Government.

It also affords me great satisfaction to state that Governor Cumming
has performed his duty in an able and conciliatory manner and with the
happiest effect. I can not in this connection refrain from mentioning the
valuable services of Colonel Thomas L. Kane, who, from motives of pure
benevolence and without any official character or pecuniary compensation,
visited Utah during the last inclement winter for the purpose of contributing
to the pacification of the Territory.

I am happy to inform you that the governor and other civil officers
of Utah are now performing their appropriate functions without resistance.
The authority of the Constitution and the laws has been fully restored
and peace prevails throughout the Territory. A portion of the troops sent
to Utah are now encamped in Cedar Valley, 44 miles southwest of Salt Lake
City, and the remainder have been ordered to Oregon to suppress Indian
hostilities.

The march of the army to Salt Lake City through the IndianTerritory
has had a powerful effect in restraining the hostile feelings against the
United States which existed among the Indians in that region and in securing
emigrants to the far West against their depredations. This will also be
the means of establishing military posts and promoting settlements along
the route. I recommend that the benefits of our land laws and preemption
system be extended to the people of Utah by the establishment of a land
office in that Territory.

I have occasion also to congratulate you on the result of our negotiations
with China.

You were informed by my last annual message that our minister had been
instructed to occupy a neutral position in the hostilities conducted by
Great Britain and France against Canton. He was, however, at the same time
directed to cooperate cordially with the British and French ministers in
all peaceful measures to secure by treaty those just concessions to foreign
commerce which the nations of the world had a right to demand. It was impossible
for me to proceed further than this on my own authority without usurping
the war-making power, which under the Constitution belongs exclusively
to Congress.

Besides, after a careful examination of the nature and extent of our
grievances, I did not believe they were of such a pressing and aggravated
character as would have justified Congress in declaring war against the
Chinese Empire without first making another earnest attempt to adjust them
by peaceful negotiation. I was the more inclined to this opinion because
of the severe chastisement which had then but recently been inflicted upon
the Chinese by our squadron in the capture and destruction of the Barrier
forts to avenge an alleged insult to our flag. The event has proved the
wisdom of our neutrality. Our minister has executed his instructions with
eminent skill and ability. In conjunction with the Russian plenipotentiary,
he has peacefully, but effectually, cooperated with the English and French
plenipotentiaries, and each of the four powers has concluded a separate
treaty with China of a highly satisfactory character. The treaty concluded
by our own plenipotentiary will immediately be submitted to the Senate.

I am happy to announce that through the energetic yet conciliatory efforts
of our consul-general in Japan a new treaty has been concluded with that
Empire, which may be expected materially to augment our trade and intercourse
in that quarter and remove from our countrymen the disabilities which have
heretofore been imposed upon the exercise of their religion. The treaty
shall be submitted to the Senate for approval without delay.

It is my earnest desire that every misunderstanding with the Government
of Great Britain should be amicably and speedily adjusted. It has been
the misfortune of both countries, almost ever since the period of the Revolution,
to have been annoyed by a succession of irritating and dangerous questions,
threatening their friendly relations. This has partially prevented the
full development of those feelings of mutual friendship between the people
of the two countries so natural in themselves and so conducive to their
common interest. Any serious interruption of the commerce between the United
States and Great Britain would be equally injurious to both. In fact, no
two nations have ever existed on the face of the earth which could do each
other so much good or so much harm.

Entertaining these sentiments, I am gratified to inform you that the
long-pending controversy between the two Governments in relation to the
question of visitation and search has been amicably adjusted. The claim
on the part of Great Britain forcibly to visit American vessels on the
high seas in time of peace could not be sustained under the law of nations,
and it had been overruled by her own most eminent jurists. This question
was recently brought to an issue by the repeated acts of British cruisers
in boarding and searching our merchant vessels in the Gulf of Mexico and
the adjacent seas. These acts were the more injurious and annoying, as
these waters are traversed by a large portion of the commerce and navigation
of the United States and their free and unrestricted use is essential to
the security of the coastwise trade between the different States of the
Union. Such vexatious interruptions could not fail to excite the feelings
of the country and to require the interposition of the Government. Remonstrances
were addressed to the British Government against these violations of our
rights of sovereignty, and a naval force was at the same time ordered to
the Cuban waters with directions "to protect all vessels of the United
States on the high seas from search or detention by the vessels of war
of any other nation." These measures received the unqualified and even
enthusiastic approbation of the American people. Most fortunately, however,
no collision took place, and the British Government promptly avowed its
recognition of the principles of international law upon this subject as
laid down by the Government of the United States in the note of the Secretary
of State to the British minister at Washington of April 10, 1858, which
secure the vessels of the United States upon the high seas from visitation
or search in time of peace under any circumstances whatever. The claim
has been abandoned in a manner reflecting honor on the British Government
and evincing a just regard for the law of nations, and can not fail to
strengthen the amicable relations between the two countries.

The British Government at the same time proposed to the United States
that some mode should be adopted, by mutual arrangement between the two
countries, of a character which may be found effective without being offensive,
for verifying the nationality of vessels suspected on good grounds of carrying
false colors. They have also invited the United States to take the initiative
and propose measures for this purpose. Whilst declining to assume so grave
a responsibility, the Secretary of State has informed the British Government
that we are ready to receive any proposals which they may feel disposed
to offer having this object in view, and to consider them in an amicable
spirit. A strong opinion is, however, expressed that the occasional abuse
of the flag of any nation is an evil far less to be deprecated than would
be the establishment of any regulations which might be incompatible with
the freedom of the seas. This Government has yet received no communication
specifying the manner in which the British Government would propose to
carry out their suggestion, and I am inclined to believe that no plan which
can be devised will be free from grave embarrassments. Still, I shall form
no decided opinion on the subject until I shall have carefully and in the
best spirit examined any proposals which they may think proper to make.

I am truly sorry I can not also inform you that the complications between
Great Britain and the United States arising out of the Clayton and Bulwer
treaty of April, 1850, have been finally adjusted.

At the commencement of your last session I had reason to hope that,
emancipating themselves from further unavailing discussions, the two Governments
would proceed to settle the Central American questions in a practical manner,
alike honorable and satisfactory to both; and this hope I have not yet
abandoned. In my last annual message I stated that overtures had been made
by the British Government for this purpose in a friendly spirit, which
I cordially reciprocated. Their proposal was to withdraw these questions
from direct negotiation between the two Governments, but to accomplish
the same object by a negotiation between the British Government and each
of the Central American Republics whose territorial interests are immediately
involved. The settlement was to be made in accordance with the general
tenor of the interpretation placed upon the Clayton and Bulwer treaty by
the United States, with certain modifications. As negotiations are still
pending upon this basis, it would not be proper for me now to communicate
their present condition. A final settlement of these questions is greatly
to be desired, as this would wipe out the last remaining subject of dispute
between the two countries.

Our relations with the great Empires of France and Russia, as well as
with all other Governments on the continent of Europe, except that of Spain,
continue to be of the most friendly character.

With Spain our relations remain in an unsatisfactory condition. In my
message of December last I informed you that our envoy extraordinary and
minister plenipotentiary to Madrid had asked for his recall, and it was
my purpose to send out a new minister to that Court with special instructions
on all questions pending between the two Governments, and with a determination
to have them speedily and amicably adjusted if that were possible. This
purpose has been hitherto defeated by causes which I need not enumerate.
The mission to Spain has been intrusted to a distinguished citizen of Kentucky,
who will proceed to Madrid without delay and make another and a final attempt
to obtain justice from that Government.

Spanish officials under the direct control of the Captain-General of
Cuba have insulted our national flag and in repeated instances have from
time to time inflicted injuries on the persons and property of our citizens.
These have given birth to numerous claims against the Spanish Government,
the merits of which have been ably discussed for a series of years by our
successive diplomatic representatives. Notwithstanding this, we have not
arrived at a practical result in any single instance, unless we may except
the case of the Black Warrior, under the late Administration, and that
presented an outrage of such a character as would have justified an immediate
resort to war. All our attempts to obtain redress have been baffled and
defeated. The frequent and oft-recurring changes in the Spanish ministry
have been employed as reasons for delay. We have been compelled to wait
again and again until the new minister shall have had time to investigate
the justice of our demands.

Even what have been denominated "the Cuban claims," in which more than
100 of our citizens are directly interested, have furnished no exception.
These claims were for the refunding of duties unjustly exacted from American
vessels at different custom-houses in Cuba so long ago as the year 1844.
The principles upon which they rest are so manifestly equitable and just
that, after a period of nearly ten years, in 1854 they were recognized
by the Spanish Government. Proceedings were afterwards instituted to ascertain
their amount, and this was finally fixed, according to their own statement
(with which we were satisfied), at the sum of $128,635.54. Just at the
moment, after a delay of fourteen years, when we had reason to expect that
this sum would be repaid with interest, we have received a proposal offering
to refund one-third of that amount ($42,878.41), but without interest,
if we would accept this in full satisfaction. The offer is also accompanied
by a declaration that this indemnification is not founded on any reason
of strict justice, but is made as a special favor.

One alleged cause for procrastination in the examination and adjustment
of our claims arises from an obstacle which it is the duty of the Spanish
Government to remove. Whilst the Captain-General of Cuba is invested with
general despotic authority in the government of that island, the power
is withheld from him to examine and redress wrongs committed by officials
under his control on citizens of the United States. Instead of making our
complaints directly to him at Havana, we are obliged to present them through
our minister at Madrid. These are then referred back to the Captain-General
for information, and much time is thus consumed in preliminary investigations
and correspondence between Madrid and Cuba before the Spanish Government
will consent to proceed to negotiation. Many of the difficulties between
the two Governments would be obviated and a long train of negotiation avoided
if the Captain-General were invested with authority to settle questions
of easy solution on the spot, where all the facts are fresh and could be
promptly and satisfactorily ascertained. We have hitherto in vain urged
upon the Spanish Government to confer this power upon the Captain-General,
and our minister to Spain will again be instructed to urge this subject
on their notice. In this respect we occupy a different position from the
powers of Europe. Cuba is almost within sight of our shores; our commerce
with it is far greater than that of any other nation, including Spain itself,
and our citizens are in habits of daily and extended personal intercourse
with every part of the island. It is therefore a great grievance that when
any difficulty occurs, no matter how unimportant, which might be readily
settled at the moment, we should be obliged to resort to Madrid, especially
when the very first step to be taken there is to refer it back to Cuba.

The truth is that Cuba, in its existing colonial condition, is a constant
source of injury and annoyance to the American people. It is the only spot
in the civilized world where the African slave trade is tolerated, and
we are bound by treaty with Great Britain to maintain a naval force on
the coast of Africa, at much expense both of life and treasure, solely
for the purpose of arresting slavers bound to that island. The late serious
difficulties between the United States and Great Britain respecting the
right of search, now so happily terminated, could never have arisen if
Cuba had not afforded a market for slaves. As long as this market shall
remain open there can be no hope for the civilization of benighted Africa.
Whilst the demand for slaves continues in Cuba wars will be waged among
the petty and barbarous chiefs in Africa for the purpose of seizing subjects
to supply this trade. In such a condition of affairs it is impossible that
the light of civilization and religion can ever penetrate these dark abodes.

It has been made known to the world by my predecessors that the United
States have on several occasions endeavored to acquire Cuba from Spain
by honorable negotiation. If this were accomplished, the last relic of
the African slave trade would instantly disappear. We would not, if we
could, acquire Cuba in any other manner. This is due to our national character.
All the territory which we have acquired since the origin of the Government
has been by fair purchase from France, Spain, and Mexico or by the free
and voluntary act of the independent State of Texas in blending her destinies
with our own. This course we shall ever pursue, unless circumstances should
occur which we do not now anticipate, rendering a departure from it clearly
justifiable under the imperative and overruling law of self-preservation.
The island of Cuba, from its geographical position, commands the mouth
of the Mississippi and the immense and annually increasing trade, foreign
and coastwise, from the valley of that noble river, now embracing half
the sovereign States of the Union. With that island under the dominion
of a distant foreign power this trade, of vital importance to these States,
is exposed to the danger of being destroyed in time of war, and it has
hitherto been subjected to perpetual injury and annoyance in time of peace.
Our relations with Spain, which ought to be of the most friendly character,
must always be placed in jeopardy whilst the existing colonial government
over the island shall remain in its present condition.

Whilst the possession of the island would be of vast importance to the
United States, its value to Spain is comparatively unimportant. Such was
the relative situation of the parties when the great Napoleon transferred
Louisiana to the United States. Jealous as he ever was of the national
honor and interests of France, no person throughout the world has imputed
blame to him for accepting a pecuniary equivalent for this cession.

The publicity which has been given to our former negotiations upon this
subject and the large appropriation which may be required to effect the
purpose render it expedient before making another attempt to renew the
negotiation that I should lay the whole subject before Congress. This is
especially necessary, as it may become indispensable to success that I
should be intrusted with the means of making an advance to the Spanish
Government immediately after the signing of the treaty, without awaiting
the ratification of it by the Senate. I am encouraged to make this suggestion
by the example of Mr. Jefferson previous to the purchase of Louisiana from
France and by that of Mr. Polk in view of the acquisition of territory
from Mexico. I refer the whole subject to Congress and commend it to their
careful consideration.

I repeat the recommendation made in my message of December last in favor
of an appropriation "to be paid to the Spanish Government for the purpose
of distribution among the claimants in the Amistad case." President Polk
first made a similar recommendation in December, 1847, and it was repeated
by my immediate predecessor in December, 1853. I entertain no doubt that
indemnity is fairly due to these claimants under our treaty with Spain
of October 27, 1795; and whilst demanding justice we ought to do justice.
An appropriation promptly made for this purpose could not fail to exert
a favorable influence on our negotiations with Spain.

Our position in relation to the independent States south of us on this
continent, and especially those within the limits of North America, is
of a peculiar character. The northern boundary of Mexico is coincident
with our own southern boundary from ocean to ocean, and we must necessarily
feel a deep interest in all that concerns the well-being and the fate of
so near a neighbor. We have always cherished the kindest wishes for the
success of that Republic, and have indulged the hope that it might at last,
after all its trials, enjoy peace and prosperity under a free and stable
government. We have never hitherto interfered, directly or indirectly,
with its internal affairs, and it is a duty which we owe to ourselves to
protect the integrity of its territory against the hostile interference
of any other power. Our geographical position, our direct interest in all
that concerns Mexico, and our well-settled policy in regard to the North
American continent render this an indispensable duty.

Mexico has been in a state of constant revolution almost ever since
it achieved its independence. One military leader after another has usurped
the Government in rapid succession, and the various constitutions from
time to time adopted have been set at naught almost as soon as they were
proclaimed. The successive Governments have afforded no adequate protection,
either to Mexican citizens or foreign residents, against lawless violence.
Heretofore a seizure of the capital by a military chieftain has been generally
followed by at least the nominal submission of the country to his rule
for a brief period, but not so at the present crisis of Mexican affairs.
A civil war has been raging for some time throughout the Republic between
the central Government at the City of Mexico, which has endeavored to subvert
the constitution last framed by military power, and those who maintain
the authority of that constitution. The antagonist parties each hold possession
of different States of the Republic, and the fortunes of the war are constantly
changing. Meanwhile the most reprehensible means have been employed by
both parties to extort money from foreigners, as well as natives, to carry
on this ruinous contest. The truth is that this fine country, blessed with
a productive soil and a benign climate, has been reduced by civil dissension
to a condition of almost hopeless anarchy and imbecility. It would be vain
for this Government to attempt to enforce payment in money of the claims
of American citizens, now amounting to more than $10,000,000, against Mexico,
because she is destitute of all pecuniary means to satisfy these demands.

Our late minister was furnished with ample powers and instructions for
the adjustment of all pending questions with the central Government of
Mexico, and he performed his duty with zeal and ability. The claims of
our citizens, some of them arising out of the violation of an express provision
of the treaty of Guadalupe Hidalgo, and others from gross injuries to persons
as well as property, have remained unredressed and even unnoticed. Remonstrances
against these grievances have been addressed without effect to that Government.
Meantime in various parts of the Republic instances have been numerous
of the murder, imprisonment, and plunder of our citizens by different parties
claiming and exercising a local jurisdiction; but the central Government,
although repeatedly urged thereto, have made no effort either to punish
the authors of these outrages or to prevent their recurrence. No American
citizen can now visit Mexico on lawful business without imminent danger
to his person and property. There is no adequate protection to either,
and in this respect our treaty with that Republic is almost a dead letter.

This state of affairs was brought to a crisis in May last by the promulgation
of a decree levying a contribution pro rata upon all the capital in the
Republic between certain specified amounts, whether held by Mexicans or
foreigners. Mr. Forsyth, regarding this decree in the light of a "forced
loan," formally protested against its application to his countrymen and
advised them not to pay the contribution, but to suffer it to be forcibly
exacted. Acting upon this advice, an American citizen refused to pay the
contribution, and his property was seized by armed men to satisfy the amount.
Not content with this, the Government proceeded still further and issued
a decree banishing him from the country. Our minister immediately notified
them that if this decree should be carried into execution he would feel
it to be his duty to adopt "the most decided measures that belong to the
powers and obligations of the representative office." Notwithstanding this
warning, the banishment was enforced, and Mr. Forsyth promptly announced
to the Government the suspension of the political relations of his legation
with them until the pleasure of his own Government should be ascertained.

This Government did not regard the contribution imposed by the decree
of the 15th May last to be in strictness a "forced loan," and as such prohibited
by the tenth article of the treaty of 1826 between Great Britain and Mexico,
to the benefits of which American citizens are entitled by treaty; yet
the imposition of the contribution upon foreigners was considered an unjust
and oppressive measure. Besides, internal factions in other parts of the
Republic were at the same time levying similar exactions upon the property
of our citizens and interrupting their commerce. There had been an entire
failure on the part of our minister to secure redress for the wrongs which
our citizens had endured, notwithstanding his persevering efforts. And
from the temper manifested by the Mexican Government he had repeatedly
assured us that no favorable change could be expected until the United
States should "give striking evidence of their will and power to protect
their citizens," and that "severe chastening is the only earthly remedy
for our grievances." From this statement of facts it would have been worse
than idle to direct Mr. Forsyth to retrace his steps and resume diplomatic
relations with that Government, and it was therefore deemed proper to sanction
his withdrawal of the legation from the City of Mexico.

Abundant cause now undoubtedly exists for a resort to hostilities against
the Government still holding possession of the capital. Should they succeed
in subduing the constitutional forces, all reasonable hope will then have
expired of a peaceful settlement of our difficulties. On the other hand,
should the constitutional party prevail and their authority be established
over the Republic, there is reason to hope that they will be animated by
a less unfriendly spirit and may grant that redress to American citizens
which justice requires so far as they may possess the means. But for this
expectation I should at once have recommended to Congress to grant the
necessary power to the President to take possession of a sufficient portion
of the remote and unsettled territory of Mexico, to be held in pledge until
our injuries shall be redressed and our just demands be satisfied. We have
already exhausted every milder means of obtaining justice. In such a case
this remedy of reprisals is recognized by the law of nations, not only
as just in itself, but as a means of preventing actual war.

But there is another view of our relations with Mexico, arising from
the unhappy condition of affairs along our southwestern frontier, which
demands immediate action. In that remote region, where there are but few
white inhabitants, large bands of hostile and predatory Indians roam promiscuously
over the Mexican States of Chihuahua and Sonora and our adjoining Territories.
The local governments of these States are perfectly helpless and are kept
in a state of constant alarm by the Indians. They have not the power, if
they possessed the will, even to restrain lawless Mexicans from passing
the border and committing depredations on our remote settlers. A state
of anarchy and violence prevails throughout that distant frontier. The
laws are a dead letter and life and property wholly insecure. For this
reason the settlement of Arizona is arrested, whilst it is of great importance
that a chain of inhabitants should extend all along its southern border
sufficient for their own protection and that of the United States mail
passing to and from California. Well-founded apprehensions are now entertained
that the Indians and wandering Mexicans, equally lawless, may break up
the important stage and postal communication recently established between
our Atlantic and Pacific possessions. This passes very near to the Mexican
boundary throughout the whole length of Arizona. I can imagine no possible
remedy for these evils and no mode of restoring law and order on that remote
and unsettled frontier but for the Government of the United States to assume
a temporary protectorate over the northern portions of Chihuahua and Sonora
and to establish military posts within the same; and this I earnestly recommend
to Congress. This protection may be withdrawn as soon as local governments
shall be established in these Mexican States capable of performing their
duties to the United States, restraining the lawless, and preserving peace
along the border.

I do not doubt that this measure will be viewed in a friendly spirit
by the governments and people of Chihuahua and Sonora, as it will prove
equally effectual for the protection of their citizens on that remote and
lawless frontier as for citizens of the United States. And in this connection
permit me to recall your attention to the condition of Arizona. The population
of that Territory, numbering, as is alleged, more than 10,000 souls, are
practically without a government, without laws, and without any regular
administration of justice. Murder and other crimes are committed with impunity.
This state of things calls loudly for redress, and I therefore repeat my
recommendation for the establishment of a Territorial government over Arizona.

The political condition of the narrow isthmus of Central America, through
which transit routes pass between the Atlantic and Pacific oceans, presents
a subject of deep interest to all commercial nations. It is over these
transits that a large proportion of the trade and travel between the European
and Asiatic continents is destined to pass. To the United States these
routes are of incalculable importance as a means of communication between
their Atlantic and Pacific possessions. The latter now extend throughout
seventeen degrees of latitude on the Pacific coast, embracing the important
State of California and the flourishing territories of Oregon and Washington.
All commercial nations therefore have a deep and direct interest that these
communications shall be rendered secure from interruption. If an arm of
the sea connecting the two oceans penetrated through Nicaragua and Costa
Rica, it could not be pretended that these States would have the right
to arrest or retard its navigation to the injury of other nations. The
transit by land over this narrow isthmus occupies nearly the same position.
It is a highway in which they themselves have little interest when compared
with the vast interests of the rest of the world. Whilst their rights of
sovereignty ought to be respected, it is the duty of other nations to require
that this important passage shall not be interrupted by the civil wars
and revolutionary outbreaks which have so frequently occurred in that region.
The stake is too important to be left at the mercy of rival companies claiming
to hold conflicting contracts with Nicaragua. The commerce of other nations
is not to stand still and await the adjustment of such petty controversies.
The Government of the United States expect no more than this, and they
will not be satisfied with less. They would not, if they could, derive
any advantage from the Nicaragua transit not common to the rest of the
World. Its neutrality and protection for the common use of all nations
is their only object. They have no objection that Nicaragua shall demand
and receive a fair compensation from the companies and individuals who
may traverse the route, but they insist that it shall never hereafter be
closed by an arbitrary decree of that Government. If disputes arise between
it and those with whom they may have entered into contracts, these must
be adjusted by some fair tribunal provided for the purpose, and the route
must not be closed pending the controversy. This is our whole policy, and
it can not fail to be acceptable to other nations.

All these difficulties might be avoided if, consistently with the good
faith of Nicaragua, the use of this transit could be thrown open to general
competition, providing at the same time for the payment of a reasonable
rate to the Nicaraguan Government on passengers and freight. In August,
1852, the Accessory Transit Company made its first interoceanic trip over
the Nicaraguan route, and continued in successful operation, with great
advantage to the public, until the 18th February, 1856, when it was closed
and the grant to this company as well as its charter were summarily and
arbitrarily revoked by the Government of President Rivas. Previous to this
date, however, in 1854, serious disputes concerning the settlement of their
accounts had arisen between the company and the Government, threatening
the interruption of the route at any moment. These the United States in
vain endeavored to compose. It would be useless to narrate the various
proceedings which took place between the parties up till the time when
the transit was discontinued. Suffice it to say that since February, 1856,
it has remained closed, greatly to the prejudice of citizens of the United
States. Since that time the competition has ceased between the rival routes
of Panama and Nicaragua, and in consequence thereof an unjust and unreasonable
amount has been exacted from our citizens for their passage to and from
California

A treaty was signed on the 16th day of November, 1857, by the Secretary
of State and minister of Nicaragua, under the stipulations of which the
use and protection of the transit route would have been secured, not only
to the United States, but equally to all other nations. How and on what
pretext this treaty has failed to receive the ratification of the Nicaraguan
Government will appear by the papers herewith communicated from the State
Department. The principal objection seems to have been to the provision
authorizing the United States to employ force to keep the route open in
case Nicaragua should fail to perform her duty in this respect. From the
feebleness of that Republic, its frequent changes of government, and its
constant internal dissensions, this had become a most important stipulation,
and one essentially necessary, not only for the security of the route,
but for the safety of American citizens passing and repassing to and from
our Pacific possessions. Were such a stipulation embraced in a treaty between
the United States and Nicaragua, the knowledge of this fact would of itself
most probably prevent hostile parties from committing aggressions on the
route, and render our actual interference for its protection unnecessary.

The executive government of this country in its intercourse with foreign
nations is limited to the employment of diplomacy alone. When this fails
it can proceed no further. It can not legitimately resort to force without
the direct authority of Congress, except in resisting and repelling hostile
attacks. It would have no authority to enter the territories of Nicaragua
even to prevent the destruction of the transit and protect the lives and
property of our own citizens on their passage. It is true that on a sudden
emergency of this character the President would direct any armed force
in the vicinity to march to their relief, but in doing this he would act
upon his own responsibility.

Under these circumstances I earnestly recommend to Congress the passage
of an act authorizing the president, under such restrictions as they may
deem proper, to employ the land and naval forces of the United States in
preventing the transit from being obstructed or closed by lawless violence,
and in protecting the lives and property of American citizens traveling
thereupon, requiring at the same time that these forces shall be withdrawn
the moment the danger shall have passed away. Without such a provision
our citizens will be constantly exposed to interruption in their progress
and to lawless violence.

A similar necessity exists for the passage of such an act for the protection
of the Panama and Tehuantepec routes. In reference to the Panama route,
the United States, by their existing treaty with New Granada, expressly
guarantee the neutrality of the Isthmus, "with the view that the free transit
from the one to the other sea may not be interrupted or embarrassed in
any future time while this treaty exists."

In regard to the Tehuantepec route, which has been recently opened under
the most favorable auspices, our treaty with Mexico of the 30th December,
1853, secures to the citizens of the United States a right of transit over
it for their persons and merchandise and stipulates that neither Government
shall "interpose any obstacle" thereto. It also concedes to the United
States the "right to transport across the Isthmus, in closed bags, the
mails of the United States not intended for distribution along the line
of the communication; also the effects of the United States Government
and its citizens which may be intended for transit and not for distribution
on the Isthmus, free of custom-house or other charges by the Mexican Government."

These treaty stipulations with New Granada and Mexico, in addition to
the considerations applicable to the Nicaragua route, seem to require legislation
for the purpose of carrying them into effect.

The injuries which have been inflicted upon our citizens in Costa Rica
and Nicaragua during the last two or three years have received the prompt
attention of this Government. Some of these injuries were of the most aggravated
character. The transaction at Virgin Bay in April, 1856, when a company
of unarmed Americans, who were in no way connected with any belligerent
conduct or party, were fired upon by the troops of Costa Rica and numbers
of them killed and wounded, was brought to the knowledge of Congress by
my predecessor soon after its occurrence, and was also presented to the
Government of Costa Rica for that immediate investigation and redress which
the nature of the case demanded. A similar course was pursued with reference
to other outrages in these countries, some of which were hardly less aggravated
in their character than the transaction at Virgin Bay. At the time, however,
when our present minister to Nicaragua was appointed, in December, 1857,
no redress had been obtained for any of these wrongs and no reply even
had been received to the demands which had been made by this Government
upon that of Costa Rica more than a year before. Our minister was instructed,
therefore, to lose no time in expressing to those Governments the deep
regret with which the President had witnessed this inattention to the just
claims of the United States and in demanding their prompt and satisfactory
adjustment. Unless this demand shall be complied with at an early day it
will only remain for this Government to adopt such other measures as may
be necessary in order to obtain for itself that justice which it has in
vain attempted to secure by peaceful means from the Governments of Nicaragua
and Costa Rica. While it has shown, and will continue to show, the most
sincere regard for the rights and honor of these Republics, it can not
permit this regard to be met by an utter neglect on their part of what
is due to the Government and citizens of the United States.

Against New Granada we have long-standing causes of complaint, arising
out of the unsatisfied claims of our citizens upon that Republic, and to
these have been more recently added the outrages committed upon our citizens
at Panama in April, 1856. A treaty for the adjustment of these difficulties
was concluded by the Secretary of State and the minister of New Granada
in September, 1857, which contained just and acceptable provisions for
that purpose. This treaty was transmitted to Bogota and was ratified by
the Government of New Granada, but with certain amendments. It was not,
however, returned to this city until after the close of the last session
of the Senate. It will be immediately transmitted to that body for their
advice and consent, and should this be obtained it will remove all our
existing causes of complaint against New Granada on the subject of claims.

Questions have arisen between the two Governments as to the right of
New Granada to levy a tonnage duty upon the vessels of the United States
in its ports of the Isthmus and to levy a passenger tax upon our citizens
arriving in that country, whether with a design to remain there or to pass
from ocean to ocean by the transit route; and also a tax upon the mail
of the United States transported over the Panama Railroad. The Government
of New Granada has been informed that the United States would consider
the collection of either of these taxes as an act in violation of the treaty
between the two countries, and as such would be resisted by the United
States. At the same time, we are prepared to discuss these questions in
a spirit of amity and justice and with a sincere desire to adjust them
in a satisfactory manner. A negotiation for that purpose has already been
commenced. No effort has recently been made to collect these taxes nor
is any anticipated under present circumstances.

With the Empire of Brazil our relations are of the most friendly character.
The productions of the two countries, and especially those of an agricultural
nature, are such as to invite extensive mutual exchanges. A large quantity
of American flour is consumed in Brazil, whilst more than treble the amount
in value of Brazilian coffee is consumed in the United States. Whilst this
is the case, a heavy duty has been levied until very recently upon the
importation of American flour into Brazil. I am gratified, however, to
be able to inform you that in September last this has been reduced from
$1.32 to about 49 cents per barrel, and the duties on other articles of
our production have been diminished in nearly the same proportion.

I regret to state that the Government of Brazil still continues to levy
an export duty of about 11 per cent on coffee, notwithstanding this article
is admitted free from duty in the United States. This is a heavy charge
upon the consumers of coffee in our country, as we purchase half of the
entire surplus crop of that article raised in Brazil. Our minister, under
instructions, will reiterate his efforts to have this export duty removed,
and it is hoped that the enlightened Government of the Emperor will adopt
this wise, just, and equal policy. In that event, there is good reason
to believe that the commerce between the two countries will greatly increase,
much to the advantage of both. The claims of our citizens against the Government
of Brazil are not in the aggregate of very large amount; but some of these
rest upon plain principles of justice and their settlement ought not to
be longer delayed. A renewed and earnest, and I trust a successful, effort
will be made by our minister to procure their final adjustment.

On the 2d of June last Congress passed a joint resolution authorizing
the President "to adopt such measures and use such force as in his judgment
may be necessary and advisable" "for the the purpose of the differences
between the United States and the Republic of Paraguay, in connection with
the attack on the United States steamer Water Witch and with other measures
referred to" in his annual message, and on the 12th of July following they
made an appropriation to defray the expenses and compensation of a commissioner
to that Republic should the President deem it proper to make such all appointment.

In compliance with these enactments, I have appointed a commissioner,
who has proceeded to Paraguay with full powers and instructions to settle
these differences in an amicable and peaceful manner if this be practicable.
His experience and discretion justify the hope that he may prove successful
in convincing the Paraguayan Government that it is due both to honor and
justice that they should voluntarily and promptly make atonement for the
wrongs which they have committed against the United States and indemnify
our injured citizens whom they have forcibly despoiled of their property.

Should our commissioner prove unsuccessful after a sincere and earnest
effort to accomplish the object of his mission, then no alternative will
remain but the employment of force to obtain "just satisfaction" from Paraguay.
In view of this contingency, the Secretary of the Navy, under my direction,
has fitted out and dispatched a naval force to rendezvous near Buenos Ayres,
which, it is believed, will prove sufficient for the occasion. It is my
earnest desire, however, that it may not be found necessary to resort to
this last alternative.

When Congress met in December last the business of the country had just
been crushed by one of those periodical revulsions which are the inevitable
consequence of our unsound and extravagant system of bank credits and inflated
currency. With all the elements of national wealth in abundance, our manufactures
were suspended, our useful public and private enterprises were arrested,
and thousands of laborers were deprived of employment and reduced to want.
Universal distress prevailed among the commercial, manufacturing, and mechanical
classes. This revulsion was felt the more severely in the United States
because similar causes had produced the like deplorable effects throughout
the commercial nations of Europe. All were experiencing sad reverses at
the same moment. Our manufacturers everywhere suffered severely, not because
of the recent reduction in the tariff of duties on imports, but because
there was no demand at any price for their productions. The people were
obliged to restrict themselves in their purchases to articles of prime
necessity. In the general prostration of business the iron manufacturers
in different States probably suffered more than any other class, and much
destitution was the inevitable consequence among the great number of workmen
who had been employed in this useful branch of industry. There could be
no supply where there was no demand. To present an example, there could
be no demand for railroad iron after our magnificent system of railroads,
extending its benefits to every portion of the Union, had been brought
to a dead pause. The same consequences have resulted from similar causes
to many other branches of useful manufactures. It is self-evident that
where there is no ability to purchase manufactured articles these can not
be sold, and consequently must cease to be produced.

No government, and especially a government of such limited powers as
that of the United States, could have prevented the late revulsion. The
whole commercial world seemed for years to have been rushing to this catastrophe.
The same ruinous consequences would have followed in the United States
whether the duties upon foreign imports had remained as they were under
the tariff of 1846 or had been raised to a much higher standard. The tariff
of 1857 had no agency in the result. The general causes existing throughout
the world could not have been controlled by the legislation of any particular
country.

The periodical revulsions which have existed in our past history must
continue to return at intervals so long as our present unbounded system
of bank credits shall prevail. They will, however, probably be the less
severe in future, because it is not to be expected, at least for many years
to come, that the commercial nations of Europe, with whose interests our
own are so materially involved, will expose themselves to similar calamities.
But this subject was treated so much at large in my last annual message
that I shall not now pursue it further. Still, I respectfully renew the
recommendation in favor of the passage of a uniform bankrupt law applicable
to banking institutions. This is all the direct power over the subject
which I believe the Federal Government possesses. Such a law would mitigate,
though it might not prevent, the evil. The instinct of self-preservation
might produce a wholesome restraint upon their banking business if they
knew in advance that a suspension of specie payments would inevitably produce
their civil death.

But the effects of the revulsion are now slowly but surely passing away.
The energy and enterprise of our citizens, with our unbounded resources,
will within the period of another year restore a state of wholesome industry
and trade. Capital has again accumulated in our large cities. The rate
of interest is there very low. Confidence is gradually reviving, and so
soon as it is discovered that this capital can be profitably employed in
commercial and manufacturing enterprises and in the construction of railroads
and other works of public and private improvement prosperity will again
smile throughout the land. It is vain, however, to disguise the fact from
ourselves that a speculative inflation of our currency without a corresponding
inflation in other countries whose manufactures come into competition with
our own must ever produce disastrous results to our domestic manufactures.
No tariff short of absolute prohibition can prevent these evil consequences.
In connection with this subject it is proper to refer to our financial
condition. The same causes which have produced pecuniary distress throughout
the country have so reduced the amount of imports from foreign countries
that the revenue has proved inadequate to meet the necessary expenses of
the Government. To supply the deficiency, Congress, by the act of December
23, 1857, authorized the issue of $20,000,000 of Treasury notes; and this
proving inadequate, they authorized, by the act of June 14, 1858, a loan
of $20,000,000," to be applied to the payment of appropriations made by
law."

No statesman would advise that we should go on increasing the national
debt to meet the ordinary expenses of the Government. This would be a most
ruinous policy. In case of war our credit must be our chief resource, at
least for the first year, and this would be greatly impaired by having
contracted a large debt in time of peace. It is our true policy to increase
our revenue so as to equal our expenditures. It would be ruinous to continue
to borrow. Besides, it may be proper to observe that the incidental protection
thus afforded by a revenue tariff would at the present moment to some extent
increase the confidence of the manufacturing interests and give a fresh
impulse to our reviving business. To this surely no person will object.

In regard to the mode of assessing and collecting duties under a strictly
revenue tariff, I have long entertained and often expressed the opinion
that sound policy requires this should be done by specific duties in cases
to which these can be properly applied. They are well adapted to commodities
which are usually sold by weight or by measure, and which from their nature
are of equal or of nearly equal value. Such, for example, are the articles
of iron of different classes, raw sugar, and foreign wines and spirits.

In my deliberate judgment specific duties are the best, if not the only,
means of securing the revenue against false and fraudulent invoices, and
such has been the practice adopted for this purpose by other commercial
nations. Besides, specific duties would afford to the American manufacturer
the incidental advantages to which he is fairly entitled under a revenue
tariff. The present system is a sliding scale to his disadvantage. Under
it, when prices are high and business prosperous, the duties rise in amount
when he least requires their aid. On the contrary, when prices fall and
he is struggling against adversity, the duties are diminished in the same
proportion, greatly to his injury. Neither would there be danger that a
higher rate of duty than that intended by Congress could be levied in the
form of specific duties. It would be easy to ascertain the average value
of any imported article for a series of years, and, instead of subjecting
it to an ad valorem duty at a certain rate per centum, to substitute in
its place an equivalent specific duty.

By such an arrangement the consumer would not be injured. It is true
he might have to pay a little more duty on a given article in one year,
but, if so, he would pay a little less in another, and in a series of years
these would counterbalance each other and amount to the same thing so far
as his interest is concerned. This inconvenience would be trifling when
contrasted with the additional security thus afforded against frauds upon
the revenue, in which every consumer is directly interested.

I have thrown out these suggestions as the fruit of my own observation,
to which Congress, in their better judgment, will give such weight as they
may justly deserve.

The report of the Secretary of the Treasury will explain in detail the
operations of that Department of the Government. The receipts into the
Treasury from all sources during the fiscal year ending June 30, 1858,
including the Treasury notes authorized by the act of December 23, 1857,
were $70,273,869.59, which amount, with the balance of $17,710,114.27 remaining
in the Treasury at the commencement of the year, made an aggregate for
the service of the year of $87,983,983.86.

The public expenditures during the fiscal year ending June 30, 1858,
amounted to $81,585,667.76, of which $9,684,537.99 were applied to the
payment of the public debt and the redemption of Treasury notes with the
interest thereon, leaving in the Treasury on July 1, 1858, being the commencement
of the present fiscal year, $6,398,316.10.

The receipts into the Treasury during the first quarter of the present
fiscal year, commencing the 1st of July, 1858, including one-half of the
loan of $20,000,000, with the premium upon it, authorized by the act of
June 14, 1858, were $25,230,879.46, and the estimated receipts for the
remaining three quarters to the 30th of June, 1859, from ordinary sources
are $38,500,000, making, with the balance before stated, an aggregate of
$70,129,195.56.

The expenditures during the first quarter of the present fiscal year
were $21,708,198.51, of which $1,010,142.37 were applied to the payment
of the public debt and the redemption of Treasury notes and the interest
thereon. The estimated expenditures during the remaining three quarters
to June 30, 1859, are $52,357,698.48, making an aggregate of $74,065,896.99,
being an excess of expenditure beyond the estimated receipts into the Treasury
from ordinary sources during the fiscal year to the 30th of June, 1859,
of $3,936,701.43. Extraordinary means are placed by law within the command
of the Secretary of the Treasury, by the reissue of Treasury notes redeemed
and by negotiating the balance of the loan authorized by the act of June
14, 1858, to the extent of $11,000,000, which, if realized during the present
fiscal year, will leave a balance in the Treasury on the 1st day of July,
1859, of $7,063,298.57.

The estimated receipts during the next fiscal year, ending June 30,
1860, are $62,000,000, which, with the above-estimated balance of $7,063,298.57
make an aggregate for the service of the next fiscal year of $69,063,298.57.
The estimated expenditures during the next fiscal year, ending June 30,
1860, are $73,139,147.46, which leaves a deficit of estimated means, compared
with the estimated expenditures, for that year, commencing on July 1, 1859,
of $4,075,848.89.

In addition to this sum the Postmaster-General will require from the
Treasury for the service of the Post-Office Department $3,838,728, as explained
in the report of the Secretary of the Treasury, which will increase the
estimated deficit on June 30, 1860, to $7,914,576.89. To provide for the
payment of this estimated deficiency, which will be increased by such appropriations
as may be made by Congress not estimated for in the report of the Treasury
Department, as well as to provide for the gradual redemption from year
to year of the outstanding Treasury notes, the Secretary of the Treasury
recommends such a revision of the present tariff as will raise the required
amount. After what I have already said I need scarcely add that I concur
in the opinion expressed in his report--that the public debt should not
be increased by an additional loan--and would therefore strongly urge upon
Congress the duty of making at their present session the necessary provision
for meeting these liabilities.

The public debt on July 1, 1858, the commencement of the present fiscal
year, was $25,155,977.66.

During the first quarter of the present year the sum of $10,000,000
has been negotiated of the loan authorized by the act of June 14, 1858,
making the present outstanding public debt, exclusive of Treasury notes,
$35,155,977.66. There was on the 1st of July, 1858, of Treasury notes issued
by authority of the act of December 23, 1857, unredeemed, the sum of $19,754,800,
making the amount of actual indebtedness at that date $54,910,777.66. To
this will be added $10,000,000 during the present fiscal year, this being
the remaining half of the loan of $20,000,000 not yet negotiated.

The rapid increase of the public debt and the necessity which exists
for a modification of the tariff to meet even the ordinary expenses of
the Government ought to admonish us all, in our respective spheres of duty,
to the practice of rigid economy. The objects of expenditure should be
limited in number, as far as this may be practicable, and the appropriations
necessary to carry them into effect ought to be disbursed under the strictest
accountability. Enlightened economy does not consist in the refusal to
appropriate money for constitutional purposes essential to the defense,
progress, and prosperity of the Republic, but in taking care that none
of this money shall be wasted by mismanagement in its application to the
objects designated by law.

Comparisons between the annual expenditure at the present time and what
it was ten or twenty years ago are altogether fallacious. The rapid increase
of our country in extent and population renders a corresponding increase
of expenditure to some extent unavoidable. This is constantly creating
new objects of expenditure and augmenting the amount required for the old.
The true questions, then, are, Have these objects been unnecessarily multiplied,
or has the amount expended upon any or all of them been larger than comports
with due economy? In accordance with these principles, the heads of the
different Executive Departments of the Government have been instructed
to reduce their estimates for the next fiscal year to the lowest standard
consistent with the efficiency of the service, and this duty they have
performed in a spirit of just economy. The estimates of the Treasury, War,
Navy, and Interior Departments have each been in some degree reduced, and
unless a sudden and unforeseen emergency should arise it is not anticipated
that a deficiency will exist in either within the present or the next fiscal
year. The Post-Office Department is placed in a peculiar position, different
from the other Departments, and to this I shall hereafter refer.

I invite Congress to institute a rigid scrutiny to ascertain whether
the expenses in all the Departments can not be still further reduced, and
I promise them all the aid in my power in pursuing the investigation.

I transmit herewith the reports made to me by the Secretaries of War,
of the Navy, of the Interior, and of the Postmaster-General. They each
contain valuable information and important recommendations, to which I
invite the attention of Congress.

In my last annual message I took occasion to recommend the immediate
construction of ten small steamers of light draft, for the purpose of increasing
the efficiency of the Navy. Congress responded to the recommendation by
authorizing the construction of eight of them. The progress which has been
made in executing this authority is stated in the report of the Secretary
of the Navy. I concur with him in the opinion that a greater number of
this class of vessels is necessary for the purpose of protecting in a more
efficient manner the persons and property of American citizens on the high
seas and in foreign countries, as well as in guarding more effectually
our own coasts. I accordingly recommend the passage of an act for this
purpose.

The suggestions contained in the report of the Secretary of the Interior,
especially those in regard to the disposition of the public domain, the
pension and bounty-land system, the policy toward the Indians, and the
amendment of our patent laws, are worthy of the serious consideration of
Congress.

The Post-Office Department occupies a position very different from that
of the other Departments. For many years it was the policy of the Government
to render this a self-sustaining Department; and if this can not now be
accomplished, in the present condition of the country, we ought to make
as near an approach to it as may be practicable.

The Postmaster-General is placed in a most embarrassing position by
the existing laws. He is obliged to carry these into effect. He has no
other alternative. He finds, however, that this can not be done without
heavy demands upon the Treasury over and above what is received for postage,
and these have been progressively increasing from year to year until they
amounted for the last fiscal year, ending on the 30th of June, 1858, to
more than $4,500,000, whilst it is estimated that for the present fiscal
year they will amount to $6,290,000. These sums are exclusive of the annual
appropriation of $700,000 for "compensation for the mail service performed
for the two Houses of Congress and the other Departments and officers of
the Government in the transmission of free matter."

The cause of these large deficits is mainly attributable to the increased
expense of transporting the mails. In 1852 the sum paid for this service
was but a fraction above four millions and a quarter. Since that year it
has annually increased, until in 1858 it has reached more than eight millions
and a quarter, and for the service of 1859 it is estimated that it will
amount to more than $10,000,000.

The receipts of the Post-Office Department can be made to approach or
to equal its expenditure only by means of the legislation of Congress.
In applying any remedy care should be taken that the people shall not be
deprived of the advantages which they are fairly entitled to enjoy from
the Post-Office Department. The principal remedies recommended to the consideration
of Congress by the Postmaster-General are to restore the former rate of
postage upon single letters to 5 cents; to substitute for the franking
privilege the delivery to those now entitled to enjoy it of post-office
stamps for their correspondence, and to direct the Department in making
contracts for the transportation of the mail to confine itself to the payment
of the sum necessary for this single purpose, without requiring it to be
transported in post coaches or carriages of any particular description.
Under the present system the expense to the Government is greatly increased
by requiring that the mail shall be carried in such vehicles as will accommodate
passengers. This will be done, without pay from the Department, over all
roads where the travel will remunerate the contractors.

These recommendations deserve the grave consideration of Congress. I
would again call your attention to the construction of a Pacific railroad.
Time and reflection have but served to confirm me in the truth and justice
of the observations which I made on this subject in my last annual message,
to which I beg leave respectfully to refer.

It is freely admitted that it would be inexpedient for this Government
to exercise the power of constructing the Pacific railroad by its own immediate
agents. Such a policy would increase the patronage of the Executive to
a dangerous extent, and introduce a system of jobbing and corruption which
no vigilance on the part of Federal officials could either prevent or detect.
This can only be done by the keen eye and active and careful supervision
of individual and private interest. The construction of this road ought
therefore to be committed to companies incorporated by the States or other
agencies whose pecuniary interests would be directly involved. Congress
might then assist them in the work by grants of land or of money, or both,
under such conditions and restrictions as would secure the transportation
of troops and munitions of war free from any charge and that of the United
States mail at a fair and reasonable price.

The progress of events since the commencement of your last session has
shown how soon difficulties disappear before a firm and determined resolution.
At that time such a road was deemed by wise and patriotic men to be a visionary
project. The great distance to be overcome and the intervening mountains
and deserts in the way were obstacles which, in the opinion of many, could
not be surmounted. Now, after the lapse of but a single year, these obstacles,
it has been discovered, are far less formidable than they were supposed
to be, and mail stages with passengers now pass and repass regularly twice
in each week, by a common wagon road, between San Francisco and St. Louis
and Memphis in less than twenty-five days. The service has been as regularly
performed as it was in former years between New York and this city.

Whilst disclaiming all authority to appropriate money for the construction
of this road, except that derived from the war-making power of the Constitution,
there are important collateral considerations urging us to undertake the
work as speedily as possible. The first and most momentous of these is
that such a road would be a powerful bond of union between the States east
and west of the Rocky Mountains. This is so self-evident as to require
no illustration.

But again, in a commercial point of view, I consider this the great
question of the day. With the eastern front of our Republic stretching
along the Atlantic and its western front along the Pacific, if all the
parts should be united by a safe, easy, and rapid intercommunication we
must necessarily command a very large proportion of the trade both of Europe
and Asia. Our recent treaties with China and Japan will open these rich
and populous Empires to our commerce; and the history of the world proves
that the nation which has gained possession of the trade with eastern Asia
has always become wealthy and powerful. The peculiar geographical position
of California and our Pacific possessions invites American capital and
enterprise into this fruitful field. To reap the rich harvest, however,
it is an indispensable prerequisite that we shall first have a railroad
to convey and circulate its products throughout every portion of the Union.
Besides, such a railroad through our temperate latitude, which would not
be impeded by the frosts and snows of winter nor by the tropical heats
of summer, would attract to itself much of the travel and the trade of
all nations passing between Europe and Asia.

On the 21st of August last Lieutenant J. N. Maffit, of the United States
brig Dolphin, captured the slaver Echo (formerly the Putnam, of New Orleans)
near Kay Verde, on the coast of Cuba, with more than 300 African negroes
on board. The prize, under the command of Lieutenant Bradford, of the United
States Navy, arrived at Charleston on the 27th August, when the negroes,
306 in number, were delivered into the custody of the United States marshal
for the district of South Carolina. They were first placed in Castle Pinckney,
and afterwards in Fort Sumter, for safe-keeping, and were detained there
until the 19th September, when the survivors, 271 in number, were delivered
on board the United States steamer Niagara to be transported to the coast
of Africa under the charge of the agent of the United States, pursuant
to the provisions of the act of the 3d March, 1819, "in addition to the
acts prohibiting the slave trade." Under the second section of this act
the President is "authorized to make such regulations and arrangements
as he may deem expedient for the safe-keeping, support, and removal beyond
the limits of the United States of all such negroes, mulattoes, or persons
of color" captured by vessels of the United States as may be delivered
to the marshal of the district into which they are brought, "and to appoint
a proper person or persons residing upon the coast of Africa as agent or
agents for receiving the negroes, mulattoes, or persons of color delivered
from on board vessels seized in the prosecution of the slave trade by commanders
of United States armed vessels."

A doubt immediately arose as to the true construction of this act. It
is quite clear from its terms that the President was authorized to provide
"for the safe-keeping, support, and removal" of these negroes up till the
time of their delivery to the agent on the coast of Africa, but no express
provision was made for their protection and support after they had reached
the place of their destination. Still, an agent was to be pointed to receive
them in Africa, and it could not have been supposed that Congress intended
he should desert them at the moment they were received and turn them loose
on that inhospitable coast to perish for want of food or to become again
the victims of the slave trade. Had this been the intention of Congress,
the employment of an agent to receive them, who is required to reside on
the coast, was unnecessary, and they might have been landed by our vessels
anywhere in Africa and left exposed to the sufferings and the fate which
would certainly await them.

Mr. Monroe, in his special message of December 17, 1819, at the first
session after the act was passed, announced to Congress what in his opinion
was its true construction. He believed it to be his duty under it to follow
these unfortunates into Africa and make provision for them there until
they should be able to provide for themselves. In communicating this interpretation
of the act to Congress he stated that some doubt had been entertained as
to its true intent and meaning, and he submitted the question to them so
that they might, "should it be deemed advisable, amend the same before
further proceedings are had under it." Nothing was done by Congress to
explain the act, and Mr. Monroe proceeded to carry it into execution according
to his own interpretation. This, then, became the practical construction.
When the Africans from on board the Echo were delivered to the marshal
at Charleston, it became my duty to consider what disposition ought to
be made of them under the law. For many reasons it was expedient to remove
them from that locality as speedily as possible. Although the conduct of
the authorities and citizens of Charleston in giving countenance to the
execution of the law was just what might have been expected from their
high character, yet a prolonged continuance of 300 Africans in the immediate
vicinity of that city could not have failed to become a source of inconvenience
and anxiety to its inhabitants. Where to send them was the question. There
was no portion of the coast of Africa to which they could be removed with
any regard to humanity except to Liberia. Under these circumstances an
agreement was entered into with the Colonization Society on the 7th of
September last, a copy of which is herewith transmitted, under which the
society engaged, for the consideration of $45,000, to receive these Africans
in Liberia from the agent of the United States and furnish them during
the period of one year thereafter with comfortable shelter, clothing, provisions,
and medical attendance, causing the children to receive schooling, and
all, whether children or adults, to be instructed in the arts of civilized
life suitable to their condition. This aggregate of $45,000 was based upon
an allowance of $150 for each individual; and as there has been considerable
mortality among them and may be more before they reach Africa, the society
have agreed, in an equitable spirit, to make such a deduction from the
amount as under the circumstances may appear just and reasonable. This
can not be fixed until we shall ascertain the actual number which may become
a charge to the society. It was also distinctly agreed that under no circumstances
shall this Government be called upon for any additional expenses. The agents
of the society manifested a laudable desire to conform to the wishes of
the Government throughout the transaction. They assured me that after a
careful calculation they would be required to expend the sum of $150 on
each individual in complying with the agreement, and they would have nothing
left to remunerate them for their care, trouble, and responsibility. At
all events, I could make no better arrangement, and there was no other
alternative. During the period when the Government itself, through its
own agents, undertook the task of providing for captured negroes in Africa
the cost per head was very much greater.

There having been no outstanding appropriation applicable to this purpose,
I could not advance any money on the agreement. I therefore recommend that
an appropriation may be made of the amount necessary to carry it into effect.

Other captures of a similar character may, and probably will, be made
by our naval forces, and I earnestly recommend that Congress may amend
the second section of the act of March 3, 1819, so as to free its construction
from the ambiguity which has so long existed and render the duty of the
President plain in executing its provisions.

I recommend to your favorable regard the local interests of the District
of Columbia. As the residence of Congress and the Executive Departments
of the Government, we can not fail to feel a deep concern in its welfare.
This is heightened by the high character and the peaceful and orderly conduct
of its resident inhabitants.

I can not conclude without performing the agreeable duty of expressing
my gratification that Congress so kindly responded to the recommendation
of my last annual message by affording me sufficient time before the close
of their late session for the examination of all the bills presented to
me for approval. This change in the practice of Congress has proved to
be a wholesome reform. It exerted a beneficial influence on the transaction
of legislative business and elicited the general approbation of the country.
It enabled Congress to adjourn with that dignity and deliberation so becoming
to the representatives of this great Republic, without having crowded into
general appropriation bills provisions foreign to their nature and of doubtful
constitutionality and expediency. Let me warmly and strongly commend this
precedent established by themselves as a guide to their proceedings during
the present session.